Govt simplifies oil, gas block processes; provides for self-certification, deemed approval

In perhaps the most far-reaching easing of rules, the government has simplified procedures for oil and gas exploration and production by providing for self certification for a host of compliance, such as a discovery notification and deemed consent for investment in fields in a stipulated time.

With a view to make it easier to do business, the government has provided that notification of a discovery and tests to confirm them will not require approval and documents will be accepted on self-certification basis, according to the notification issued on April 25.

Work programme and field development plan or their revisions will be deemed to be approved on expiry of 30 days of submission of documents under self-certification. Only issues requiring government nod will be grant of petroleum exploration or mining license, transfer of stake and extensions.

The Directorate General of Hydrocarbons (DGH) has issued a detailed notification, simplifying procedures and process under Production Sharing Contract (PSC) for pre-NELP and NELP oil and gas blocks.

Almost all of India's oil and gas production comes from either areas given to state-owned ONGC and OIL on nomination basis or awarded to companies such as Reliance Industries and Cairn in bid rounds since 1990s.

"Ease of doing businesses is one of the focus areas of the government in exploration and production (E&P) sector, with the objective to increase investment and production," the DGH said in the April 25 order.

"Simplification of procedures and processes make the system transparent and faster which facilitates investments in the sector."